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Real Estate Law Forum
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Your Hosts: William Bronchick, J.D. & John Merchant, J.D.
John Merchant is retired lawyer and long-time real estate investor. He's owned commercial real estate of every type in a number of states. He's a frequent speaker at real estate investment gatherings and contributes real estate investing articles to various real estate newsletters and publications. |
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Posted by Kent Cheatham on September 27, 2001 at 21:19:26:
This discussion is a about whether rental late fee's are accrued as if each month is a continuing contract or whether you stop acruing late fee's for a given month, at months end and any further ones are from the NEXT months late fee. I know I didnt say that clearly. Let me show an example. My contracts state the following: You have a one year lease, rent due on the 1st, late after the 4th. On the 5th,I assess, $35, and here is the crux...."with $5 accruing per day thereafter." I am wondering what will hold up in court. I treat each month as a separate accrual, with fines running parallel and overlapping. I.E. If I sue to evict on day 45 (due date of the 1st being day one)(and I know what yall are gonna say bout waiting...grin) and I get to court on day 59, I would show (2 months rent due) plus (a pair of $35's) plus (54 days x $5 for month one late fees) plus (24 days x $5 for month 2 late fees). For a total of $465 in late fees to date. As a side kicker question this guy is gonna be evicted 48 hrs later (assumes you win eviction). If he is evicted on the 1st I am sure a judge would allow inclusion of the next months rent in the "future" suit for garnishment(ahem, excuse me, Small Claims). What if his 48 hrs is up on the 29th or 30th? Would it seem inhuman to ask for the next months rent in said future suit. (You KNOW its gonna take a few days cleanup and a couple weeks to rent!) Kent |
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